J.C. Penney Co. has hired bankers at Blackstone Group LP for advice on how the department-store chain can shore up its fast-eroding stockpile of cash, people familiar with the matter said Thursday.

Bond analysts don't think Penney's operations will be able to generate enough cash to cover the company's needs beyond a year, putting pressure on new Chief Executive Myron "Mike" Ullman to cut costs and look for ways to raise...